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PPI Company Fee but no money received

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Ok so I was contacted by a PPI company years ago who managed to recover PPI money for me.  However the company that were paying the PPI back (Capital One) kept the money as my debt with them (about 15 years before) had been partly paid off in full and final settlement and apparently they are entitled to keep any PPI claim. 

As if that wasn’t bad enough the PPI company say I still have to pay their fee as they did the work and a claim was successful.  I’m now lumbered with a £170 bill to pay and nothing for it. 

I understand they’ve done the work but I thought I shouldn’t be out of pocket for it and only pay if I physically got the money in my hands.  Really upset about this. 

Comments

  • [Deleted User]
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    They're correct.  You owe the fee as they posted your complaint for you and redress was awarded.

    It's not their concern that you still owed money to Capital One.

    You should have just posted the letter yourself if you didn't want to pay £170 for a stamp.


  • razamakaz
    razamakaz Posts: 15 Forumite
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    edited 13 September 2020 at 9:55AM
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    I’m not saying They’re not entitled to it.  PPI companies were very persistent and persuasive when it all came about.  I think I should have been warned that if debts were written off and accounts closed in full and final settlement there would be a chance the company could keep the money and I’d still have to pay their fee.  There was nothing mentioned.  

    As I had that scenario I most certainly wouldn’t have gone ahead knowing it was a risk. These companies really play down the cons and really push the pros. 
  • dunstonh
    dunstonh Posts: 116,888 Forumite
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    However the company that were paying the PPI back (Capital One) kept the money as my debt with them (about 15 years before) had been partly paid off in full and final settlement and apparently they are entitled to keep any PPI claim. 

    They are entitled to keep the redress if there was an amount written off as part of the agreed settlement.  i.e. you didn't pay the full debt but a reduced debt.      The redress can go against that shortfall and if there is an excess then the excess comes to you.

    As if that wasn’t bad enough the PPI company say I still have to pay their fee as they did the work and a claim was successful.  I’m now lumbered with a £170 bill to pay and nothing for it. 

    That is also correct.  Which is why, time and again, you see the warnings that you should not use a claims company where there are arrears, defaults, amounts written off as part of a settlement or bankruptcy.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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